As oil prices reach seven-a-half-year highs, a number of countries in the Middle East have unveiled fiscal measures designed to balance their budgets after two years of pandemic-related spending. Saudi Arabia, the Gulf’s largest economy, in mid-December announced that it expected to post its first budget surplus in eight years in 2022. The government has estimated that it will achieve a surplus of SR90bn ($24bn) this year, equivalent to 2.5% of GDP. This comes after the Kingdom recorded a deficit of 2.7% of GDP last year, which followed an 11.2% deficit in 2020 as Covid-19 weighed heavily on the economy. With oil prices currently sitting above $100 a barrel – levels not seen since 2014 – the anticipated turnaround will be driven by both an increase in revenue and a reduction in spending. Revenue is forecast to increase by around 12%, to SR1.05trn ($266.7bn). Despite this increase in revenue, […]